George Steinbrenner

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TAMPA DIVISION, ON JULY 17, 1991. b7c

REQUEST OF THE BUREAU:

FBIHQ IS REQUESTED TO PROVIDE THE JACKSONVILLE DIVISION
WITH A POLICY DETERMINATION AS TO DISCLOSURE WITHIN THE U.S.
NAVY AND DEPARTMENT OF DEFENSE (DOO) OF INVESTIGATION
CONDUCTED IN CAPTIONED MATTER.

ON JULY 12, 1991, SUPERVISORY SPECIAL AGENT (SSA)
JACKSONVILLE DIVISION, MET WITH SSA

AND

SA[

] FRAUD UNIT, NAVAL INVESTIGATIVE SERVICE (NIS),

JACKSONVILLE, FLORIDA. DURING THIS MEETING, SSA
PROVIDED SSa | [ with A COPY OF AN ANONYMOUS LETTER WHICH WAS
RECEIVED BY NIS HEADQUARTERS (NISHQ) IN WASHINGTON, D.C. THE
POSTMARK ON THE ENVELOPE INDICATED THAT THIS LETTER WAS MAILED
FROM SOUTHERN BALTIMORE, MARYLAND. ALLEGATIONS CONTAINED IN
THIS LETTER ARE SUMMARIZED AS FOLLOWS:

1. GEORGE STEINBRENNER, OWNER OF AMERICAN SHIP BUILDING
COMPANY (ASC), TAMPA, FLORIDA, PAID A $100,000 BRIBE TO THE

U.S. NAVY (USN) COMMANDER FOR CONTRACTS DIRECTORATE,

IN EXCHANGE FOR ASC RECEIVING A $58 MILLION

CONTRACT TO BUILD SIX NAVY TRANSPORT VESSELS KNOWN AS T-AGOS-

23*S. EVENTUAL VALUE OF THIS CONTRACT COULD EXCEED $100

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PAGE THREE OE FBIJK 0002 UNCLAS

MILLION.

2. THE $100,000 PAID TO [
DIVIDED EQUALLY BETWEENl

WAS TO BE

AND USN

COMMANDER OF NAVAL SEA SYSTEMS COMMAND, WHICH IS
RESPONSIBLE FOR THE AWARDING OF ALL USN CONTRACTS.

3. FORMER USN

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PERSONAL FRIEND AND FORMER CLASSMATE 0F[

(RETIRED), A CLOSE
| WAS

ALSO OFFERED THE POSITION OF CHIEF EXECUTIVE OFFICER (CEO) OF
ASC IN TAMPA, FLORIDA, IN EXCHANGE FOR ASC RECEIVING THE
CONTRACT.

PROGRAM MANAGER, NAVAL SEA

A.

SYSTEMS COMMAND, OPPOSED THE AWARDING OF THE CONTRACT TO ASC
DUE TO THEIR LACK OF FINANCIAL CAPABILITY, PRIOR POOR
PERFORMANCE AND LACK OF QUALITY ASSURANCE CONTROL TO PERFORM
THE CONTRACT. ALLEGEDLY,

WAS RECENTLY FORCED TO

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RETIRE AS A RESULT OF THIS SITUATION.

ON JULY 12, 1991, A COPY OF THIS ANONYMOUS LETTER MAS
FAXED TO THE MANAGING ASSISTANT UNITED STATES ATTORNEY (MAUSA)

ImIDDLE DISTRICT OF FLORIDA (MDF),

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JACKSONVILLE, FLORIDAi AND A CONFERENCE CALL WAS HELD

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CONCERNING THE ABOVE. AFTER A REVIEW OF THE ANONYMOUS LETTER

AND DISCUSSIONS WITH SSA

AND SSA

MAUSA

ADVISED THAT AN INVEStiGATION SHOULD BE INITIATED

CONCERNING THE ALLEGATIONS^ AND IF THE ABOVE ALLEGATIONS ARE
SUBSTANTIATED, PROSECUTION UNDER THE FOLLOWING STATUTES WOULD
BE PURSUED:

1. HOBBS ACT-EXTORTION OF GOVERNMENT OFFICIALS;

2. MC NALLY AMENDMENTS TO THE MAIL FRAUD STATUTE, 18
U.S. CODE, SECTION 1341;

3. CONSPIRACY, 18 U.S. CODE, SECTION 371;

4. FRAUD BY WIRE, 18 U.S. CODE, SECTION 1343;

5. BRIBERY, 18 U.S. CODE, SECTION 201; AND

6. CONFLICT OF INTEREST, 18 U.S. CODE, SECTION 208.

MAUSA

ADVISED THAT PROSECUTIVE VENUE COULD LIE b6 per FB;

IN JACKSONVILLE, FLORIDA, FOR SOME, IF NOT ALL, OF THE ABOVE
VIOLATIONS, INASMUCH AS ALL NAVY CONTRACTS IN THIS REGION
(INCLUDES TAMPA, ORLANDO AND JACKSONVILLE, FLORIDA) ARE
ADMINISTERED BY THE USN IN JACKSONVILLE, FLORIDA.

MAUSA

ADVISED THAT THERE MAY POSSIBLY BE A

PROBLEM CONCERNING PROSECUTION IN THE MIDDLE DISTRICT OF

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FLORIDA (MDF) DUE TO A PERSONAL FRIENDSHIP THAT EXISTS BETWEEN

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THE UNITED STATES ATTORNEY, ROBERT GENZMAN, AND GEORGE

STEINBRENNER. MAUSA

ADVISED THAT HE WOULD CONTACT

GENZHAN, ADVISE HIM OF THE ABOVE INFORMATION AND RECONTACT SSA

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WITH GENZMAN’S DECISION.

ON JULY 15, 1991, MAUSA

ADVISED SSA

THAT

U.S. ATTORNEY GENZMAN WILL RECUSE HIS OFFICE IN THE HDF

(INCLUDES JACKSONVILLE) FROM PROSECUTION IN THIS MATTER, AND

HAD INSTRUCTED MAUSA

TO FORWARD A LETTER TO THE

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DEPARTMENT OF JUSTICE, WASHINGTON, D.C., REQUESTING THEIR
ASSISTANCE. GENZMAN*S DECISION WAS DUE TO THE FACT THAT
STEINBRENNER WAS RECENTLY A VICTIM/WITNESS IN AN EXTORTION
TRIAL PROSECUTED BY GENZMAN'S OFFICE, AND THERE WERE UNFOUNDED
ALLEGATIONS IN THE MEDIA THAT THE FBI AND U.S. ATTORNEY»S
OFFICE HAD PURSUED INVESTIGATION AND PROSECUTION IN THIS
HATTER BASED SOLELY ON PERSONAL RELATIONSHIPS WHICH EXISTED
BETWEEN STEINBRENNER AND MEMBERS OF THE U.S. ATTORNEY'S OFFICE

AND FBI IN TAMPA, FLORIDA. MAUSA

EMPHASIZED THAT

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NOTWITHSTANDING THE TOTAL FALSITY OF THESE ALLEGATIONS, U.S.
ATTORNEY GENZMAN DID NOT DESIRE ANY APPEARANCE OF IMPROPRIETY

OR CONFLICT OF INTEREST ON THE PART OF HIS OFFICE.